Contract Management
Evergreen & Month-to-Month Contracts
Identifies expired contracts still being paid month-to-month without renewal or retendering.
Why month-to-month payments breach competition
When a contract expires but payments continue month-to-month, the organ of state is procuring without a valid contract and without competition, which is irregular under the MFMA and SCM regulations. These evergreen arrangements deny the market a fresh opportunity and often lock in dated pricing, a frequent AGSA finding. AuditPro Core identifies expired contracts that are still being paid so they are retendered or formally extended.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Evergreen Contracts
61
▲ 9
Spend Past Expiry
R 73.4m
YTD
Avg Months Overrun
8.3
▲ 1.6
Retender Underway
17
of 61
Months Past Expiry by Contract Band (count)
Longest-Running Expired Contracts
| Contract | Vendor | Months Over | Spend (R'000) |
|---|---|---|---|
| CTR-6201 | Vendor 0341 | 29 | 18640 |
| CTR-6277 | Vendor 0702 | 21 | 12310 |
| CTR-6340 | Vendor 0988 | 16 | 9870 |
| CTR-6418 | Vendor 1255 | 13 | 7420 |
| CTR-6492 | Vendor 1503 | 11 | 5910 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Expiry as a hard stop
A contract end date is a legal limit on the mandate to spend. Payments after expiry have no contractual basis and become irregular expenditure unless a valid extension exists.
Evergreen drift
Month-to-month continuation feels convenient but bypasses competition indefinitely. What begins as a short gap routinely runs for years, entrenching a single supplier.
Variation versus new procurement
A lawful extension follows the variation rules and stays within scope and value limits. Open-ended continuation is not a variation; it is unauthorised new procurement.
Retendering discipline
Tracking contract expiry against the procurement plan lets the organ of state retender in good time, avoiding the gap that forces an evergreen arrangement.
How AuditPro Core Bridges the Gap
- Reconciliation: AuditPro Core matches payments against contract end dates to find spend continuing past expiry.
- Exception workflow: Expired-but-paid contracts raise cases for retender or formal, rule-compliant extension.
- Continuous monitoring: Upcoming expiries are flagged ahead of time so retendering starts early.
- Traceability to source: Each flag links to the contract, its expiry and the post-expiry payments.
Key Takeaways
- Payments after contract expiry are irregular without a valid extension.
- Month-to-month continuation indefinitely bypasses competition.
- Distinguish a lawful variation from unauthorised new procurement.
- Flag expiries early to retender before a gap forces an evergreen.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.